Michael Noonan (Limerick City, Fine Gael) | Oireachtas source

The Deputy will be aware that Central Bank residential mortgage arrears data published last month indicate that the level of mortgages in arrears continues to decline and has done so for the past nine consecutive quarters.  It is particularly welcome that the latest bulletin reported that all maturity categories of arrears, including the over 720 days' category, declined in quarter three of last year and it is to be hoped that this downward trend will continue.  In addition, the Central Bank data shows the impact that has been made when borrowers engage with their lenders.  Almost 121,000 principal dwelling home, PDH, mortgage accounts were classified as restructured at end-September, of which some 86.6% were deemed to be meeting the terms of their restructure arrangement. 

The Deputy will also be aware that on 13 May last the Government announced measures focused on strengthening the framework to support mortgage holders in arrears. More recently, the Minister for Justice and Equality, Deputy Frances Fitzgerald, signed the commencement order for an important recent reform under the Personal Insolvency (Amendment) Act 2015, which allows for an independent review by the courts if a fair and reasonable proposal for a personal insolvency arrangement, PIA, which includes mortgage arrears on the debtor's home, has not obtained the necessary majority consent from creditors.

In addition, the role of the Money Advice & Budgeting Service, MABS, has been enhanced.  The Minister for Social Protection, Deputy Joan Burton, launched the new dedicated mortgage arrears service before Christmas, which assigns to MABS a greater role in offering appropriate information, advice and assistance to mortgage holders through all stages of the mortgage arrears resolution process and beyond.  There will be three key strands to the dedicated mortgage arrears services, namely, the MABS helpline; specialist advisers to assist mortgage holders in identifying the best sustainable mortgage resolution option for them, and court mentors to assist home owners facing court proceedings.

It must be remembered that over 87% of principal dwelling home mortgages are not in arrears.  It is also worth repeating that where a borrower actively engages with a lender with a view to agreeing a sustainable arrangement to address his or her mortgage arrears, it is more likely that an equitable arrangement will be found and that the borrower will be able to remain in the family home.

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